You own a local US company. In the past year, you successfully expanded your sales market into Europe, and you now have profits and cash denominated in euros. You want to convert the euros to dollars to repatriate the profits and pay taxes. Which of the following is true?
A) You are not required to convert the euros to the home currency to pay taxes.
B) You are a demander of the euro in the foreign exchange market.
C) You are a supplier of your home country's currency in the foreign exchange market.
D) You are a demander of dollars in the foreign exchange market.
Correct Answer:
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